The World Bank Group (WBG) committed 17.9 billion US dollars in fiscal year 2010 –a slightly higher figure over last year’s record lending of 17.1 billion- to support countries in Latin America and the Caribbean (LAC) as they recover from the global financial crisis and resume a path of sustained growth, according to the latest report from the multilateral organization.
World Bank has reiterated its view that the Chinese government should allow the Yuan to strengthen against other international currencies. The bank also forecasted the Chinese economy would grow 9.5% in 2010 and 8.5% in 2011.
The 186 countries that own the World Bank Group endorsed on Sunday boosting its capital by more than 86 billion US dollars and giving developing countries more influence.
Economy Minister Amado Boudou said that the Argentine Government “will not accept any conditions” on its economic policies, allegedly rejecting an eventual revision of its accounts by the International Monetary Fund (IMF).
Brazil, Latinamerica’s largest economy and leading Mercosur partner is poised to grow 5.5% this year, almost a whole percentage point more than the previous forecast in January, according to the International Monetary Fund “World Economic Outlook” released in anticipation of the IMF and World Bank annual assembly this weekend in Washington.
Latinamerican countries with a greater link to China such as Chile, Brazil and Peru are moving out of the crisis faster and stronger according to a World Bank report which underlines the increasing significance of the Asian giant for the region.
A stronger Chinese currency is “critical” for the good of the global economy, Brazil's central bank chief Henrique Meirelles said on Tuesday, joining a chorus of critics of China's foreign exchange policy.